Finance

Stocks Sink, Bonds Jump as Trump Dents Trade Hopes: Markets Wrap

(Bloomberg) — U.S. stocks sank and bonds rallied after President Donald Trump aimed his tariff weapon on economies from South America to Europe and China, denting hopes for a global recovery.

The S&P 500 Index extended a three-day rout to 2.5% after Trump indicated he’d be willing to wait another year before striking an agreement with China — casting doubt on the likelihood of a phase-one accord this month. He also threatened tariffs on France a day after hitting steel from Brazil and Argentina. Treasuries, gold, the yen and Swiss franc paced gains among haven assets.

The S&P 500 Index extended a three-day rout to 2.5% after Trump indicated he’d be willing to wait another year before striking an agreement with China — casting doubt on the likelihood of a phase-one accord this month. He also threatened tariffs on France a day after hitting steel from Brazil and Argentina. Treasuries, gold, the yen and Swiss franc paced gains among haven assets.

Investors are assessing the chances of a trade truce after the latest developments eroded optimism on that front. Chinese state media said the government would soon publish a list of “unreliable entities” that could lead to sanctions against American companies, and France said the European Union would retaliate if the U.S. follows through on proposed levies.

“We were pretty skeptical we were actually going to get something in December of any kind of substance that would actually improve corporate confidence,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, told Bloomberg TV. “We thought resolution was baked in and we were skeptical that resolution was actually going to happen.”

Here are some key events coming up this week:

  • Germany releases factory-order data for October on Thursday.
  • Saudi Aramco’s initial public offering is scheduled to be priced on Thursday, with Riyadh looking to raise more than $25 billion.
  • Friday brings the U.S. jobs report, where estimates are for non-farm payrolls to rise by 190,000 in November.

These are the main moves in markets:

Stocks

  • The S&P 500 slid 1.1% to 3,079.44 at 9:31 a.m. in New York.
  • The Stoxx Europe 600 Index decreased 0.8%.
  • The MSCI Asia Pacific Index fell 0.3%.

Currencies

  • The Bloomberg Dollar Spot Index was little changed.
  • The euro was little changed at $1.108.
  • The Japanese yen appreciated 0.3% to 108.65 per dollar,.

Bonds

Bonds

  • The yield on 10-year Treasuries dropped six basis points to 1.76%.
  • Germany’s 10-year yield declined four basis points to -0.32%.
  • Britain’s 10-year yield fell two basis points to 0.717%.

Commodities

Commodities

  • The Bloomberg Commodity Index gained 0.2%.
  • West Texas Intermediate crude decreased 0.4% to $55.72 a barrel.
  • Gold jumped 0.9% to $1,482.90 an ounce.